Economy & Business MCQs

With inflation stable at 4.5%, which is within the RBI's target band of 2-6%, the MPC would likely maintain a neutral or accommodative stance, focusing on supporting growth while keeping inflation anchored.

The Government of India, in consultation with the RBI, has set a medium-term inflation target of 4% with a tolerance band of +/- 2%, meaning the acceptable range is 2% to 6%.

The PLI scheme focuses on specific manufacturing sectors to boost domestic production and exports. Unorganized retail (Kirana Stores) is not a sector covered under the PLI scheme, which targets sectors like electronics, automobiles, textiles, pharmaceuticals, etc.

PLI schemes are designed to provide incentives to companies based on incremental sales or production of goods manufactured in India, encouraging them to invest in capacity expansion and achieve economies of scale.

The PLI scheme aims to boost domestic manufacturing, create jobs, and enhance India's export capabilities by offering incentives on incremental sales from products manufactured in India.

The framework primarily regulates Regulated Entities (REs) such as banks and NBFCs, and their associated Lending Service Providers (LSPs) who facilitate digital lending, ensuring that all participants adhere to fair practices.

A key guideline mandates that loan disbursement and repayment must be executed directly between the borrower and the Regulated Entity (RE) without any pass-through involvement of a Lending Service Provider (LSP) to ensure transparency and accountability.

The RBI's enhanced digital lending framework primarily aims to protect consumers from unethical lending practices, ensure transparency, and promote responsible lending by regulated entities and their lending service providers.

The current base year for calculating India's GDP is 2011-12. The base year is periodically revised to reflect structural changes in the economy.

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.